Punjab National Bank Makes “Positive Pay System” (PPS) Mandatory For Cheque Payments Worth Rs 5 Lakh & Above

In a move to safeguard customers from fraudulent payment of cheques, Punjab National Bank, nation’s leading public sector bank, made “Positive Pay System” (PPS) compulsory for cheque payments worth Rs. 5 Lakh and above. This will come into effect from 05.04.23.  

The PPS is a system developed by the National Payments Corporation of India (NPCI), which requires customers to reconfirm essential details (account number, cheque number, cheque alpha code, issue date, amount, and beneficiary name) when issuing cheques of certain amount. This adds an extra layer of security against any potential risk while processing such cheques.  

Customers can use the PPS facility by providing the cheque details through Branch office, Online Banking for individuals and businesses, Mobile Banking (PNB ONE), or SMS Banking. The details to be submitted one working day prior to cheque presentation/clearing date. 

As per Reserve Bank of India (RBI) guidelines, PNB had introduced PPS for cheques of Rs. 50,000 and above presented in CTS clearing from January 01, 2021. RBI had recommended that availing this facility is at the account holder’s discretion and banks may consider making it mandatory for cheques of Rs. 5 Lakh and above. 

The cheques that are registered in the PPS will only be accepted under the dispute resolution mechanism. 

Earlier, the mandatory submission of cheque details in PPS was set at Rs 10 Lakh & above.